Forum Energy Metals : INTERIM FINANCIAL STATEMENTS THREE MONTHS FEBRUARY 28 2022

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three months ended February 28, 2022

(Unaudited - Expressed in Canadian Dollars)

NOTICE TO READER

These condensed interim consolidated financial statements of Forum Energy Metals Corp. have been prepared by management and approved by the Board of Directors of the Company. In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company discloses that its external auditors have not reviewed these condensed interim consolidated financial statements, notes to the financial statements or the related quarterly Management's Discussion and Analysis.

Condensed Interim Consolidated Statements of Financial Position

(Unaudited - Expressed in Canadian Dollars)

Note

February 28, 2022

November 30, 2021

ASSETS

Current assets

Cash

Marketable securities

Receivables

Due from joint venture partner

Prepaid expenses

• 4 $ 5

5,279,404

$ 4,651,020

128,756 17,829

53,763 95,885

7

279,317

-

227,894

160,731

Equipment

Exploration and evaluation assets

5,969,134

4,925,465

6 7

6,463

7,288

944,599

1,037,428

$

6,920,196

$

5,970,181

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

Trade and other payables

Due to joint venture partner

Flow-through share premium liability

• 8 $

681,811

$ 243,028

- 1,123

9

674,536 390,761

1,356,347

634,912

Shareholders' equity

Capital stock

Contributed surplus - warrants

Contributed surplus - options

10 10 10

53,824,058 53,208,983

2,476,225 2,486,879

6,362,763 5,739,560

Deficit

(57,099,197)

(56,100,153)

5,563,849

5,335,269

$

6,920,196

$

5,970,181

Nature of operations and going concern

1

Approved and authorized by the Board of Directors on April 25, 2022.

"Richard Mazur"	"Larry Okada"
Richard Mazur	Larry Okada
Director	Director

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

(Unaudited - Expressed in Canadian Dollars)

Note

Three months ended February 28, 2022 2021

EXPENSES

Amortization Consulting fees Director fees

Exploration and evaluation expenditures Exploration and evaluation recoveries Investor relations and shareholder information Management fees earned

Office and administration Professional fees Share-based compensation Transfer agent and regulatory fees Travel and promotion

• 6 $

825 $ 826

11

96,000 68,500

11

7,500 7,500

7

304,660 25,150

7

(155,896)

83,146

- 62,049

7

- (29,651)

31,060 10,943

23,667 17,605

10

623,203 29,280

42,544 58,063

3,019

(1,059,728) $

- (250,265)

Flow-through share premium recovery Foreign exchange loss

Interest Income

Unrealized gain (loss) on marketable securities

9

5

62,383

(2,173)

(2,823)

3,297

2,238 - - 3,306

LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD

$

(999,044) $

(244,721)

Basic and diluted loss per common share

$

(0.01) $

(0.00)

Weighted average number of common shares outstanding

169,360,740

137,264,071

Condensed Interim Consolidated Statements of Cash Flows

(Unaudited - Expressed in Canadian Dollars)

Three months ended February 28, 2022 2021

CASH PROVIDED BY (USED FOR): OPERATING ACTIVITIES:

Loss for the period Items not affecting cash:

Amortization

Share-based compensation Flow-through share premium recovery Shares received from JV partner

Unrealized loss (gain) on marketable securities

Change in non-cash working capital items:

$

(999,044) $

(244,721)

825 623,203 (62,383) (113,750)

826 29,280 (2,238)

-2,823 (3,306)

Receivables

42,122 (21,490)Due from joint venture partner (1,123) (226,163)Prepaid expenses

Trade and other payables Due to joint venture partner

(67,163) (47,812) 438,783 (93,790) (279,317) (100,000) (415,024) (709,414)

INVESTING ACTIVITIES:

Acquisition of exploration and evaluation assets

Option payments received on exploration and evaluation assets

(65,025) (6,318)

157,854 92,829

60,000 53,682

FINANCING ACTIVITIES:

Proceeds from private placements Share issuance costs

Proceeds from exercise of warrants

1,000,012

1,500,000

(60,000)

(46,816)

10,567 350,590

Proceeds from exercise of stock options - 117,500

Repayment of promissory notes Obligation to issue shares

- - 950,579

(20,325)

5,000 1,905,949

INCREASE IN CASH FOR THE PERIOD

CASH, BEGINNING OF THE PERIOD

628,384 1,250,217

4,651,020 1,308,527

CASH, END OF THE PERIOD

$

5,279,404

$

2,558,744

Non-cash investing and financing activities

Fair value of broker warrants issued Supplemental information

Interest paid

Income taxes paid

$ $

- - -

• $ 34,854

$

- -